Maria Vamvakinou (Calwell, Australian Labor Party) Share this | Link to this | Hansard source

Tonight I would like to speak about some very innovative manufacturing that has been developed in my electorate of Calwell. I was very pleased last Friday, 9 September, to represent the Minister for Innovation, Industry, Science and Research, Senator Kim Carr, at the announcement of a very significant funding boost to a local company based in Somerton in my electorate. Nexteer Australia has just received $63 million for its New Car Plan for a Greener Future project. Sixty-three million dollars is a significant investment in innovation and manufacturing. I am personally delighted that this project will deliver huge flow-on work opportunities. I am also very excited about what it could mean for my electorate of Calwell, especially since it is expected that this investment will result in the creation of about 670 jobs.

The funding will be allocated over a three-year period and it will come from the government's Green Car Innovation Fund. Nexteer's project is geared to attract investment in new green technology and will support the creation of a new Melbourne manufacturing technical centre. The project will also be strengthened by an additional contribution from the Victorian state government.

Nexteer's Managing Director, Greg Malone, told me he was very grateful to the government for affording the company the opportunity to support its innovation and growth plans. This is an excellent example of government investment and support in Australian innovation and manufacturing. During my meeting with Mr Malone he told me that Nexteer's project outline was to reduce greenhouse gas emissions by developing electric power-steering systems, lightweight steering columns and driveline components that will make vehicles lighter and more fuel efficient. Nexteer has designed a sophisticated new technology in steering and driveline components which weigh about 21 per cent less than their conventional counterparts thereby saving more fuel, a feature that is very important in the development of the emerging green economy as it provides for energy efficient motor vehicles. This project also involves significant further innovation in the production of an Australian-made constant velocity joint that will be the first mass-produced product of its type in the world, and steering components made from advanced alloys. The electric power-steering system is cutting-edge technology. It is smart and practical and will improve fuel efficiency by about four per cent compared to traditional hydraulic systems.

Most importantly, however, Nexteer's components will be manufactured by Australian workers here in Australia and exported to Europe, the United States, China, India and the Association of South-East Asian Nations. Mr Malone, the managing director of the company, said to me:

We see the program being able to leverage manufacturing volumes to offer Australian Original Equipment Manufacturers world-competitive green products and technology through economies of scale.

In short, Nexteer's project is exactly what the New Car Plan for a Greener Future is about. It is about attracting new investment in new green technology, and to date the Nexteer project is the largest investment a non-motor vehicle producer has received from the Green Car Innovation Fund. The funding is also one of the largest investments in the automotive supply chain in decades.

In the bigger picture, Nexteer's project represents a $167 million co-investment and commercial vote of confidence in the local automotive supply chain. This new manufacturing capability will help Australia cement its place as a key supplier in a global network and it is estimated that about $2.1 billion will be pumped into the economy as result. This sets the future of manufacturing in Australia on a positive pathway and it is, as Minister Carr always says, 'A future worth fighting for.'

The other issue I would like to talk about is the government's recent $8.7 million Family Support Program investment in my federal seat of Calwell. The funding will enable organisations to continue to provide the much-needed support programs in the electorate which positively impact the lives of residents. This funding will benefit the following organisations and service providers: Anglicare Victoria, Family Mediation Centre, MacKillop Family Services, Uniting Church Australia, Banksia Gardens Community Centre, Victorian Arabic Social Services, the Hume Council and the Brotherhood of St Laurence. (Time expired)